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HomeMy WebLinkAbout1982-072 Agrmt AMND 1 - BPA No DE-MS79-81BP90432 e,. (AUTHENTICATED COPY) Amendatory Agreement No. 1 to Contract No. DE-MS79-81BP90432 June 3, 1982 AMENDATORY AGREEMENT executed by the UNITED STATES OF AMERICA DEPARTMENT OF ENERGY acting by and through BONNEVILLE POWER ADMINISTRATION and THE CITY OF ASHLAND This AMENDATORY AGREEMENT, executed December 18,1981, by the UNITED STATES t • OF AMERICA (Government), Department of Energy, acting by and through the BONNEVILLE POWER ADMINISTRATION (Bonneville) , and THE CITY OF ASHLAND (Purchaser) , a municipal corporation of the State of Oregon, WITNESSETH : WHEREAS Bonneville offered a power sales contract to the Purchaser on or shortly after August 28, 1981, and the parties hereto have executed such power sales contract (Contract No. DE-MS79-81SP90432, which as amended is hereinafter referred to as "Power Sales Contract") providing for the sale and delivery of firm power and energy to the Purchaser; and WHEREAS the parties hereto have agreed that the words of certain sections of such Power Sales Contract do not reflect the intent of the parties negotiated prior to August 28, 1981; and • vil Amendatory Agreement No. to • Contract No. OE-M579-818 AMENDATORY AGREEMENT executed by the UNITED STATES OF AMERICA DEPARTMENT' OF ENERGY acting by and through BONNEVILLE POWER ADMINISTRATION and This AMENDATORY AGREEMENT; executed 19 by the • UNITED STATES OF AMERICA (Government) , Department of Energy; acting by and through the BONNEVILLE POWER ADMINISTRATION (Bonneville) , and (Purchaser) , a of the State of , WITNESSETH : WHEREAS Bonneville offered a power sales contract to the Purchaser on or. shortly after August 28, 1981 , and the parties hereto have executed such power sales contract (Contract No. DE-MS79-818P , which as amended is hereinafter referred to as "Power Sales Contract" ) providing for the sale and delivery of firm power and energy to the Purchaser; and WHEREAS the parties hereto have agreed that the words of certain sections of such Power Sales Contract do not reflect the intent of the parties • negotiated prior to August 28, 1981 ; and WHEREAS Bonneville is authorized pursuant to law to dispose of electric power and energy generated at various Federal hydroelectric projects in the • Pacific Northwest, or acquired from other resources, to construct and operate transmission facilities, to provide transmission and other services, and to enter into agreements to carry out .such authority; NOW, THEREFORE, the parties hereto mutually agree as follows: 1. Effective .Date of Agreement. This amendatory agreement shall be effective on the later of 2400 hours on the date of execution or the effective date of the Power-Sales Contract. 2. Amendment of Power Sales Contract. The Power Sales Contract is hereby amended as follows: (a) Section 3 is amended as follows: (1 ) Section 3(b) is deleted and replaced by a new section 3(b) as follows: "(b) "Actual Fi mt Peak Load" and "Actual Firm Energy Load" mean the actual maximum integrated one-hour monthly peak and average monthly energy loads, respectively, of the Purchaser's system in the Pacific Northwest, for each Billing Month, after adjustment pursuant to section 17(e) . Such actual loads shall not include any load to the extent that the Purchaser had a unilateral right to interrupt such load during such month, even if such load was not actually interrupted, but shall include the amount of any load which the Purchaser had a right to interrupt or actually interrupted for the purpose of backing up or providing economic operation of its system including its Firm Resources. In addition, any New Large Single Load or portion of such load shall not be included in the Purchaser's firm • loads hereunder prior to the date .Bonneville is obligated to supply 2 • such load with Firm Power pursuant'to the terms of section 8(e) . Contractual obligations of the Purchaser to utilities outside its normal service area may, if permitted by the terms of section 12(a) , be included in the Purchaser's Firm Resources, but shall not be included in the Purchaser's Actual Firm Loads hereunder. Actual Firm Peak Load and Actual Firm Energy Load shall be referred to collectively as "Actual' Firm Load." (2) Section 3(o) is deleted and replaced by a new section 3(o) as follows: "(o) "Estimated Firm Peak Load" and "Estimated Firm Energy Loaa" mean the best estimate of the maximum integrated lAour monthly peak and average monthly energy loads of the Purchaser's system in the Pacific Northwest which are equally likely to be less than or greater than the Purchaser's actual peak and energy loads in each month under normal weather conditions, except that the Purchaser may increase the largest of such monthly peak loads during the Operating Year to represent the peak load which is equally likely to be less than or greater than the Purchaser's actual peak load during the Operating Year. Such system loads shall be reduced by any and all loads to the extent that the Purchaser has unilateral rights to interrupt deliveries to such load during each month of such Operating Year, excepting loads which the Purchaser has a right to interrupt for the purpose of backing up or providing economic operation of its system including its Firm Resources. In addition, any New Large Single Load or portion of such load shall not be included in the Purchaser's firm • loads hereunder prior to the date Bonneville is obligated to supply such load with Firm Power pursuant to the terms of section 8(e) . 3 Contractual obligations of the Purchaser to utilities outside its normal service area may, if permitted by the terms of section 12(a) , • be included in the Purchaser's Firm Resources, but shall not be included in the Purchaser's firm loads hereunder. Estimated Firm Peak Load and Estimated Firm Energy Load shall be referred to collectively as °Estimated Firm Load.° (b) Section 4 is amended as follows: (1 ) Exhibit B is amended by deleting section 8(d) (3) and adding a new section 8(d) (3) as follows: °(3) Upon adoption of a methodology as provided in section 4(f) (2) and section 4(e) (3) (G) pf P.L. 96-501 , Bonneville will give notice of intent to adopt a policy, provide opportunity for public comment, and publish draft procedures in the Federal Register' for imposing surcharges. Such proposed policy shall include: • (A) standards to-be met before Bonneville will excuse surcharges which would otherwise be appropriate, consistent with Bonneville's obligations to implement cost-effective conservation measures to the maximum extent practicable; (B) that Bonneville will impose surcharges to the extent not excused or suspended under the terms of the policy; (C) an opportunity for interested persons to present views, data, questions, and arguments to Bonneville relevant to the imposition of surcharges in specific instances, and the adequacy of financial assistance made available by Bonneville; (D) that surcharges imposed will be continued to the extent and for the period projected energy savings attributable to cost-effective model conservation standards are not achieved; 4 (E) for recovery from the Purchaser of the additional costs (including increases in the Utility's average system cost) that Bonneville will incur because the projected energy savings attributable to model conservation standards have not been achieved, subject to the limitations set forth in sections 4(f)(1 ) and 4(f)(2) of P.L. 96-501 ; provided, however, that surcharges will not be levied as a result of an increase in a Utility's average system cost except to the extent that the Utility failed to implement conservation measures that are designed to be cost-effective for its Consumers in terms of the electric rates its Consumers pay." (2) Exhibit B is amended by adding section 8(g) as follows: "(g) Bonneville shall establish and apply a discount to the rate or rates -of utility Customers with low system densities. The level of such discount and the standards for determining which Customers qualify for such discount shall be established pursuant to the rate adjustment process described in this section. After 5 years of experience in the application of such discount, Bonneville shall review the level and standards of such discount. Such review will occur independently of the rate adjustment process, and at such time Bonneville and the Purchaser may consider an amendment to this contract to fix the level of the discount and the standards for Customer qualification for the balance of the term of this contract, or such other amendments as the parties deem appropriate. Any such amendments shall be by mutual agreement of • Bonneville and the Purchaser. " 5 (3) Exhibit B is amended by deleting section 55 and adding a new • section 55 as follows: "55. Resale of Power. The Purchaser shall not resell Firm Power delivered under this contract except to those Consumers and utilities within its service area in the Pacific Northwest to the extent such Consumers and utilities are normally dependent on the Purchaser 'for their firm power supplies. The Purchaser shall not sell power from its Firm Resources in such a manner as to increase the Purchaser's Computed Peak Requirement or Computed Average Energy Requirement on Bonneville in acy month. These prohibitions. on resale in this section shall not be interpreted as a general prohibition against the Purchaser simultaneously purchasing Finn Power from Bonneville and selling power generated at its own facilities to other utilities or entities, nor shall these prohibitions be interpreted to preclude the Purchaser from reflecting the cost of Firm Power delivered under this contract in pricing such sales to other utilities or entities." (4) Exhibit D is amended by deleting Definition Z of section 7 and adding a new Definition Z as follows: 'Z = The load growth of the Purchaser since passage of P.L. 96-501 , and any deficits of investor-owned utilities, determined by subtracting from Bonneville's estimate of the Purchaser's Actual Firm Load for the Operating Year for which the allocation will apply either (1 ) the Purchaser's Actual Firm Load in the first Operating Year for which Bonneville's load growth notice provided in section 10(e) of' this agreement is effective for public body, cooperative and Federal aVency Customers; or (2) the contribution to the Purchaser s Assured Capabilities for such Operating Year for a Purchaser on Computed Requirements or the planning capability for a Purchaser on Metered Requirements of any Firm Resources which were included as 5(b) (1 ) (A) resources in the Purchaser's Firm Resource Exhibit for investor-owned utilities. "Z" shall be deemed to be one • for Customers where "Z" is less than one." 6 (5) Exhibit K is deleted and replaced by a new Exhibit K attached hereto and by this reference made a part of this contract in accordance with the specific provisions of this contract relating to Exhibit K. (c) Section 8(1 ) is deleted and replaced by a new section 8(i ) as follows: 0(1 ) Compliance. Bonneville and the Purchaser agree that should a Purchaser fail to report a New Large Single Load of which the Purchaser has, or rbasonably should have had knowledge, such Purchaser shall be backbilled from the date the increase in load became a New Large Single Load. For this subsection only, such backbilling shall include the following costs: (1 ) the difference between the Priority Firm Power Rate Schedule or its successor rate schedule and the New Resource Firm Power Rate Schedule or its successor rate schedule; (2) interest charges on the backbilled amount determined at Bonneville's prevailing interest rate; and (3) a late payment charge on the backbilled amount. This section 8(i) shall not apply if the Purchaser is an investor-owned utility." (d) Section 9(e) is deleted and replaced by a new section 9(e) as follows: °(e) The- limitations of subsection (b) above shall not apply if the Purchaser has developed adequate resources to meet its load growth including the increase in load resulting from service to a new facility of a Consumer or additional service to an existing facility of a Consumer and replace reductions in its Firm Resources which are included as 5(b) (1 )(A) resources in its Firm Resources Exhibit. The Purchaser shall be deemed to have developed adequate resources for Bonneville to supply such increase in load if, on an estimated basis, • the Purchaser has provided resources, which were dedicated to its 7 load as 5(b) (1 )(B ) resources or made available to Bonneville, equal to the sum of: • (1 ) reductions in 5(b) (1 ) (A) resources between the '79-8U . Operating Year and the date specified in subsection (b) (2) above which either: (A) resulted from factors reasonably within the control of the Purchaser; or (B) the Purchaser could anticipate on the date it gave notice .under subsection (b) above; and (2) growth in Actual Firm Energy Load between: (A) the first Operating Year for which Bonneville's notice under section 10(e) is effective and the date specified in (b)'(2) above for public bodies, cooperatives and Federal agencies; or • (B) the '79-80 Operating Year and the date specified in (b) (2) above for investor-owned utilitiesa" (e) Section 10 is amended by adding a new section 10(e) as follows; NO For purposes of sections 9(e), 11 (b) (4) , and Definition Z of Exhibit D only, prior to July 1 of any year Bonneville may notify the Purchaser that Bonneville needs to acquire additional resources to meet the Purchaser's load growth occurring after the start of the Operating Year specified in the notice. Such Operating Year shall not commence prior to the expiration of the fifth full Operating Year after Bonneville notifies the Purchaser hereunder." (f) Section 11 (b) (4) is deleted and replaced by a new section .11 (b) (4) as follows: 8 " (4) If regional curtailment has been requested after July 1 , 19839 because Bonneville is unable to acquire sufficient resources to meet its firm obligations, Bonneville shall reduce the amount of load curtailment determined in paragraph (3) above during any month if the Purchaser's load growth as specified in subparagraph (A) below exceeds the amount of resources. which the Purchaser has dedicated to its own load or made available to Bonneville as specified in subparagraph (B) below. Such amount of load curtailment for each month shall be reduced partially or in its entirety by the amount which (A) exceeds (B) below: (A) the excess of the Purchaser's Actual Firm Energy Load in average megawatts over the Purchaser's Actual Firm Energy . Load in average megawatts for the same month during the • Operating Year prior to the first Operating Year for which Bonneville's load growth notice provided in section 10(e) of this agreement is effective; and (B) the annual firm energy capability in average megawatts of (i ) resources acquired by Bonneville from the Purchaser under P.L. 96-591 ; and (ii) the portion of the Purchaser's Firm Resources which are included as 5(b) (1 )(B) resources in its Firm Resources Exhibit. Such resources shall not include conservation programs to the extent such programs have been reflected in the Purchaser'a Actual Firm Energy Load in subparagraph (A) above." (g) Section 12(b) (10) is deleted and replaced by a new section 12(b) (10) . as follows: 9 "(10) Any Firm Resource may be removed from the Purchaser's Firm Resources Exhibit for any Operating Year or Years to the extent • that equivalent peak and energy capability from another firm resource is added -to the Purchaser's Firm Resources Exhibit for such year or years. Such added resource shall be one which was not planned as of December 5, 1980, to meet the .firm load growth in the Pacific Northwest or, if so planned, has been offered for sale to Bonneville and Bonneville has declined such offer." (h) Section 14 is amended by adding a new section 14(e) as follows: "(e) Nothing in this Power Sales Contract shall be construed to create, or to preclude, adversely affect or otherwise limit in any manner, rights of the Purchaser to purchase nonfirm energy from Bonneville under appropriate terms and conditions in *eparate agreements at the rate specified in the Wholesale Nonfirm Energy Rate • Schedule or its successor." (i ) Section 17 is amended by resequencing subparagraphs 17(d) (1 ) (B) through (D) to 17(d) (1) (C) through (E) and adding a new section 17(d)(1 )(B) as follows: "(B) Except for the Flexibility Account balance previously retained in subparagraph (D) below, the amount of change in the Flexibility Account for any month of the Operating Year shall be limited to the sum of the following: (i) For Firm Resources which the Purchaser includes in Coordination Agreement planning, such monthly change shall not exceed the limit allowed pursuant to section 9(m) (3) of the Coordination Agreement; and 10 (ii ) For Firm Resources which the Purchaser does not include in Coordination Agreement planning, such monthly change shall not exceed the sum of the following: (a) The algebraic difference for such month between the Purchaser's Estimated Firm Energy Load less the Estimated Firm Energy Load, if any, submitted under Coordination Agreement planning and the Purchaser's Actual Firm Energy Load less the Actual Firm Energy Load, if any, submitted under the Coordination Agreement; and (b) The algebraic difference in energy capability . between the actual maintenance outages of such resources for such month and the scheduled maintenance outages of such resources used in the calculation of the Purchaser's Assured Capability for such month; and (c) For specific other purposes as mutually agreed by Bonneville and the Purchaser." (j ) Section 17(j) is amended by adding a new section 17(j ) (4) as follows: '(4) Nothing in this section 17(j ) shall be construed to limit, affect or otherwise modify Bonneville's obligation to'acquire power for the Purchaser as provided in section 9(1 ) of P.L. 96-501 ." IN WITNESS WHEREOF, the parties hereto have executed this amendatory 11 agreement in several counterparts. UNITED STATES OF AMERICA • Department of Energy By Bonneville Power Administrator By Title Date ATTEST: By Title Date (WP-PCI-1214c) 12 Exhibit K . Table 1 , Pagel of 1 Contract No. DE41S79-H1bP (Purchaser) Effective on the effective date of this amendment New Large Single Load Determinations Exhibit (This exhibit reflects determinations made pursuant to section 8 of this contract as of the effective date set forth above. ) TABLE 1 LIST OF PURCHASER' S LOADS WHICH ARE NEW LARGE SINGLE LOADS Description of Facility Location No determinations have been made as of the effective date set forth above. • (WP-PCI-1214c) Exhibit K . Table 2, Page 1 of 1 Contract No. DE-44S79-81BP (Purchaser) Effective on the effective date of this amendment Contracted For, Committed to Determinations Exhibit (This exhibit reflects determinations made pursuant to section 3(13) of P.L. 96-501 and section 8 of this contract as of the effective date set forth above. ) TABLE 2 L;ST OF PURCHASER'S LOADS AND AMOUNTS WHICH WERE CONTRACTED FOR, OR COMMITTED TO PRIOR TO SEPTEMBER 1 , 1979 Amount of Firm Energy Contracted for or Committed to Description of Facility Location as of 9/1/79 Ave. W • No determinations have been made as of the effective date set forth above. (WP-PCI-1214c)